Yuan correction short-term, no one-way depreciation – China Press

Dhwani Mehta FXStreet

“The yuan is likely to maintain a two-way fluctuation and market participants should not bet on a prolonged one-way decline,” China’s newspaper - Economic Daily said in an opinion piece on Wednesday.

Additional quotes

“China will likely maintain its support policies, including an appropriate monetary environment, as its economic recovery is unbalanced, the global pandemic outlook remains uncertain and the domestic inflation is moderate and controllable.”

“Yuan assets, including stocks and bonds, continue to attract foreign holdings with large growth potential.”

“The dollar's appreciation may also be constrained, helping keep China-U.S. rate spread stable, as the Federal Reserve will slow its policy normalization to prevent bursting asset bubbles.”

USD/CNY in daily lows

USD/CNY was last seen trading at 6.4737, modestly flat on the day, retreating from just below the 6.4800 level.

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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